NFT Is The Current Talk Of The Town

Not much in the past, a non-fungible token ‘CryptoPunk#7523’ was sold for a whopping $11.8 million. A digital avatar with amazing pixel art forming a delusive shape of I guess a human? (say like most of the emojis we use), has been sold for this mound of money.?

Just like CryptoPunk#7523, there are 10,000 NFTs of CryptoPunk alone, each sealed for an impressive sum. As soon as I heard this news my curiosity made me do nothing but explore NFT.?

An Idea Of NFT

What I bought from my research, NFT is a non-fungible or non-replaceable token of digital assets that are one of their kind (non-replaceable). The digital token (NFT) is basically the copyright of the digital asset (one-of-the-kind) confirming its ownership.?

So, the CryptoPunk NFT which was sold for 11.8 million dollars was a unique digital asset, the authority of which was sold through blockchain. You can buy even the minimalist digital asset that pokes your interest.

So far, these digital assets include artwork, songs, images, memes, movie clips, digital characters, or posters. One of the many examples is a sensational meme picture of a young girl making an unimpressed face. The original of the picture went for thousands of dollars at auction. The ownership of the picture was bought as NFT.

Where NFTs Are Traded?

The flow of NFTs is facilitated through Blockchains - the highly-encrypted yet decentralized framework that is popular alongside the term “crypto trade”. But it's high time we explore the possibilities.?

Within blockchain technology, NFTs are secured in digital blocks. Blocks that contain the information of NFTs (source to transaction approval, digital signature, dollar value, etc) are linked through encrypted peer-to-peer nodes. Only the buyer has the key to decrypt the information.

Preserving NFTs?

Most of the sensational digital masterpieces went for thousands and millions of dollars through NFTs. Trade happens in dollars or cryptocurrencies stored in digital wallets. NFT ownership certificates are also secured in digital wallets.?

Potential risks of NFTs, I believe here is for laymen to deal with blockchain technology that is incredibly extensive, partial knowledge might mislead the investors. Additionally, the asset is not in tangible form and is stored in files & folders.

Blockchain - Decentralized Security

Blockchain is an extensive yet complex technology of the current era and it's high time we open our eyes to more about it. Blockchain, despite being a decentralized platform (no centralized authority/supervision) has the audacity to conduct trade of million dollars, NFTs & virtual currencies. How??

On the blockchain, transactions are validated through peer-to-peer nodes that connect digital blocks to each other, ensuring encrypted transactions of data. Each digital block contains a cryptographic hash of the previous block, timestamp, and transaction data. There are millions and trillions of such blocks, one connected with the previous one through information. Technically intruding on such an extensive assembly is tedious to the extent it's impossible. Moreover, its consensus mechanism makes it more secure.

So, do you think NFTs, crypto, and Blockchain are the future of trade and commerce? Like Metaverse (by Facebook) is creating a virtual world. What do you think about owning virtual assets in the real world? This is just the beginning, you will soon realize you can buy virtual properties and lands through NFTs.